A number of systems exist for processing information obtained from magnetic stripe cards. An automatic teller machine reads identification information from a magnetic stripe card and transmits the information to a master accounting station along with a password punched in on a key pad by the customer. The master accounting station processes the identification information and password by checking them against a master list. If the identification information and the password are in agreement, then the master accounting station transmits a message to the automatic teller machine which allows the customer to enter a transaction request. The teller machine then transmits the information regarding the request to the master accounting station which checks the account of the person or company identified on the card. If the account permits the requested transaction, then the master accounting station transmits predetermined information to the teller machine, and if the account does not permit the requested transaction, then the master accounting station transmits different predetermined information. Normally, an automatic teller machine also includes a printer which prints out receipts for transactions and messages regarding account inquiries.
Another system which makes use of the information encoded onto magnetic stripe cards is the credit verification system. One such system is shown in U.S. Pat. No. 3,696,335 of Lemelson et al. That credit card verification system includes a master accounting station with recording means for recording and updating information with respect to specific accounts and a plurality of account verification stations. The account verification stations read the account-identifying information from a magnetic stripe card. An automatic communication system allows the automatic transmission of information from the master accounting station to the plurality of account verification stations. The automatic communication system shown is for one way communication from the master accounting station to the account verification stations, but later systems allow for two way transmission.